If inflation expectations rise, the short-run Phillips curve shifts
a. right, so that at any unemployment rate inflation is higher in the short run than before.
b. left, so that at any unemployment rate inflation is higher in the short run the before.
c. right, so that at any unemployment rate inflation is lower in the short run than before.
d. left, so that at any unemployment rate inflation is lower in the short run than before.
a
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The U.S. government bonds are likely to be less risky because:
a. the government always runs a balanced budget. b. the government bonds are backed by gold. c. the government can raise taxes to redeem the bonds at maturity. d. the government has limited liability to repay. e. the government always has an excess reserve of foreign exchange.
Which of the following is a TRUE statement?
A. Opportunity cost is always a foregone opportunity. B. Opportunity cost is always measured in the nation's currency. C. Opportunity cost is an objective measure since the cost of an activity is the same for everyone. D. The fewer alternatives there are the greater the opportunity cost.
Defining the "relevant market" involves looking at two components. They are
A. the goods market and the services market. B. the competitive market and the dominant market. C. the local market and the national market. D. the geographic market and the product market.
In the saving-investment diagram, an increase in current output would
A. shift the saving curve to the right. B. shift the investment demand curve to the left. C. shift the saving curve to the left. D. not shift the curves.